The Marketing Plan: Hisrich Peters Shepherd

Chapter 8
The Marketing Plan
Hisrich
Peters
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Shepherd
Industry Analysis
 It provides sufficient knowledge of the

environment that can affect marketing
strategy decision making.
 Information can be gathered through
secondary sources and market research.
 The entrepreneur can begin to understand
competitors’ strengths and weaknesses;
provides insight into how to position
products or services.
8-2
Industry Analysis (cont.)
 Competitor Analysis
 Document current strategies of primary
competitors.
 Information can be utilized to formulate the
market positioning strategy.
 This analysis provides a solid basis for
marketing decision making.
8-3
Marketing Research for the New
Venture
 Step One: Defining the Purpose or
Objectives
 Make a list of the information that will be
needed to prepare the marketing plan.
 Step Two: Gathering Data from Secondary
Sources
 Secondary sources can include trade magazines,
newspaper articles, libraries, government
agencies, the Internet, and commercial data.
8-4
Venture (cont.)
 Step Three: Gathering Information from
Primary Sources
 Data collection procedures - Observation,
networking, interviewing, focus groups, and
experimentation.
 Data collection instrument - Questionnaire.
8-5
Table 8.3 A Comparison of Survey
Methods
8-6
Venture (cont.)
 Step Four: Analyzing and Interpreting the
Results
 Results can be tabulated by hand or on a
computer.
 Evaluated and interpreted should be based on
research objectives.
 Cross-tabulated data can provide more focused
results.
8-7
Understanding the Marketing Plan
 Marketing plan – A marketing plan is a

comprehensive document that outlines a
company’s overall marketing effort. It is a
blueprint that outlines that how a company
will implement its marketing strategy, and
use a combination of resources to achieve
business objectives including sales targets
or customer acquisition.
8-8
Marketing Plan
The written document that describes your

advertising and marketing efforts for the
coming year; it includes a statement of the
marketing situation, a discussion of target
markets and company positioning and a
description of the marketing mix you intend to
use to reach your marketing goals
8-9
7 Steps to create a Marketing plan
Step 1:Know your business

Step 2:Determine target market
Step 3:Analyze Competitors
Step 4:Set goals
Step 5:Outline strategies
Step 6:Set a budget
Step 7:Get to work
8-10
Figure 8.1- The Marketing System
8-11
The Marketing Mix
 A combination of product, price, promotion,

and distribution and other marketing activities
needed to meet marketing objectives.
Variable Critical Decisions
Quality of components or materials, style, features, options, brand name,
Product
packaging, sizes, service availability, and warranties.
Quality image, list price, quantity, discounts, allowances for quick
Price
payment, credit terms, and payment period.
Use of wholesalers and/or retailers, type of wholesalers or retailers, how
Channels of
many, length of channel, geographic coverage, inventory, and
distribution
transportation.
Media alternatives, message, media budget, role of personal selling, sales
Promotion promotion (displays, coupons, etc.), and media interest in publicity.
8-12
Steps in Preparing the Marketing
Plan
 Defining the Business Situation
 Situation analysis - Describes past and present
business achievements of new venture.
 In case of a new venture, information should
relate to how and why the product or service
was developed.
 After a new venture has started up information
should relate to:
 Present market conditions.
 Performance of the company’s goods and services.
 Future opportunities or prospects.
8-13
Plan (cont.)
 Defining the Target Market/ Opportunities
and Threats
 The target market is specific group of potential
customers toward which the venture aims its
marketing plan.
 Market segmentation - Dividing a market into
definable and measurable groups for purposes of
targeting marketing strategy.
8-14
Plan (cont.)
 Process of segmenting and targeting customers
 Decide on general market or industry to pursue.
 Divide market into smaller groups based on:
 Characteristics of the customer – Geographic,
demographic, and psychographic.
 Buying situation – Desired benefits, usage, buying
conditions, and awareness of buying intention.
 Select segment or segments to target.
 Develop a marketing plan integrating product, price,
distribution, and promotion.
 Consider the strengths and weaknesses in the
target market.
8-15
Plan (cont.)
 Establishing Goals and Objectives
 These are statements of level of performance
desired by new venture.
 Realistic and specific marketing goals and
objectives respond to the question: “Where do
we want to go?”.
 Not all goals are quantifiable.
 Limit the number of goals or objectives to
between six and eight.
 Goals should represent key areas to ensure
marketing success.
8-16
Plan (cont.)
 Defining Marketing Strategy and Action
Programs
 Product or service
 May consider more than the physical characteristics.
 Involves packaging, brand name, price, warranty, image,
service, delivery time, features, style, and even the Web
site.
 Pricing
 Costs - Material costs, labor costs, cost of goods from
suppliers, labor and overhead expenses, etc.
 Margins or markups - Expected to cover overhead costs
and some profit.
 Competition.
8-17
Plan (cont.)
 Distribution
 Provides utility to the consumer.
 Must also be consistent with other marketing mix
variables.
 Promotion
 To inform potential consumers about the product’s
availability or to educate the consumer.
 Methods include print, radio, or television advertising,
Internet, direct mail, trade magazines, or newspapers.
 The entrepreneur should considering both costs and
effectiveness of the medium in meeting the market
objectives.
8-18
Table 8.8 - Major Considerations in
Channel Selection
8-19
Plan (cont.)
 Marketing Strategy: Consumer versus
Business-to-Business Markets
 Business-to-business markets involves selling of
products or services to another business.
 Usually aims at selling a large volume in one
transaction.
 Involves a more direct channel of distribution.
 Use trade magazine advertising, direct sales, and trade
shows.
 Consumer markets involve sales to households
for personal consumption.
8-20
Plan (cont.)
 Budgeting and Implementation
 Budgeting
 Costs should be reasonably clear.
 Assumptions, if necessary, should be clearly stated.
 Useful in preparing the financial plan.
 Implementation
 The plan is meant to be a commitment by the
entrepreneur to a specific strategy.
 Entrepreneur should ensure coordination and
implementation of the plan.
8-21
Plan (cont.)
 Monitoring the Progress of Marketing
Actions
 Involves tracking results of the marketing effort.
 Entrepreneur should prepare for contingencies.
 Minor adjustments in the plan are normal;
significant changes indicate a poorly prepared
plan.
 Weaknesses in market planning may be due to:
 Poor analysis of the market and competitive strategy.
 Unrealistic goals and objectives.
 Poor implementation of the outlined plan actions.
 Unforeseen hazards like weather or war.
8-22

The Marketing Plan: Hisrich Peters Shepherd

Uploaded by

Copyright:

Available Formats

The Marketing Plan: Hisrich Peters Shepherd

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Marketing Plan: Hisrich Peters Shepherd

Uploaded by

Copyright:

Available Formats

Chapter 8

The Marketing Plan

 It provides sufficient knowledge of the

 Marketing plan – A marketing plan is a

The written document that describes your

Step 1:Know your business

 A combination of product, price, promotion,

You might also like